Bessent to propose major overhaul of regulatory body created from financial crisis (www.cnbc.com)

Treasury Secretary Scott Bessent is set to propose a significant shift in the U.S. financial regulatory framework, moving from stringent regulations to a more relaxed approach aimed at fostering economic growth. In a letter scheduled for release, Bessent will advocate for the Financial Stability Oversight Council (FSOC) to work alongside member agencies to evaluate whether existing regulatory measures are hindering economic progress. This marks a departure from the FSOC's founding purpose after the 2008 financial crisis, which was to monitor systemic risks and bolster financial stability through stricter oversight. This proposal also aligns with the Trump administration's deregulatory agenda, suggesting a potential policy reversal that may benefit financial institutions by lowering compliance burdens. Notably, Bessent's plan includes the formation of a working group dedicated to exploring how artificial intelligence can enhance the resilience of the financial system while also assessing the risks AI technology might introduce. This initiative highlights the increasing relevance of AI in regulatory discussions and positions it as a tool to both improve oversight and bolster stability in financial markets.